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Fibonacci Stock Trading - How to Surf the Forex Currents
By
A. Daily
Article Word Count: 283 [View Summary] Comments (0) |
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Like many of you, I've tried all sorts of ways to get ahead. But it wasn't until a friend of mine, Jeff, showed me how to trade on the Forex that I really starting having something to show for my efforts.
I'm talking about a new system called "Fibonacci numbers." Of course, it's not the sequence itself that's new; Fibonacci died in 1250 AD, after all, and his "golden ratio" has been well-documented in various facets of both human and Mother nature. But recently, savvy investors have started applying lessons from the Fibonacci sequence to trends in the market - and they're getting uncanny results!
By using multiples of the golden ratio (which translates to .618), I was able to take a timeline of past currency performance and estimate what a particular currency pair would do in the future. (When it comes to the Foreign Exchange, the most commonly applied multiples of the golden ratio are 50% and 61.8%. Remember these two numbers.)
I usually begin my analysis by retracing a currency pair from it's most recent peak back to it's beginning. The larger the sample the better, but any large chunk of time is okay. I then mark the highest peak within my sample; this is 100%. (The lowest point is 0 %.) It's an easy step from there to find the values for those numbers that I mentioned above. Those values can then be used to plot future trends.
I'm no math whiz, but I made over $1000 off my first $100. I've been conservative with my investing, but even so I'm up to almost $20,000 in the six months since. And I owe it all to the Fibonacci sequence.
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Article Submitted On: January 22, 2009
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MLA Style Citation:
Daily, A. "Fibonacci Stock Trading - How to Surf the Forex Currents." Fibonacci Stock Trading - How to Surf the Forex Currents. 22 Jan. 2009 EzineArticles.com. 24 Nov. 2009 <http://ezinearticles.com/?Fibonacci-Stock-Trading-How-to-Surf-the-Forex-Currents&id=1908846>.
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APA Style Citation:
Daily, A. (2009, January 22). Fibonacci Stock Trading - How to Surf the Forex Currents. Retrieved November 24, 2009, from http://ezinearticles.com/?Fibonacci-Stock-Trading-How-to-Surf-the-Forex-Currents&id=1908846
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Chicago Style Citation:
Daily, A. "Fibonacci Stock Trading - How to Surf the Forex Currents." Fibonacci Stock Trading - How to Surf the Forex Currents EzineArticles.com. http://ezinearticles.com/?Fibonacci-Stock-Trading-How-to-Surf-the-Forex-Currents&id=1908846